Knowles, who released an album in 2008 called "I am … Sasha Fierce," will unfairly benefit from the reputation Abercrombie has built for the scent and could confuse or deceive customers into thinking Abercrombie is associated with her fragrance, the New Albany, Ohio-based retailer claimed in its lawsuit.

The singer announced Tuesday that she had signed a deal with Coty Inc. to market her new fragrance, set to launch next year, the lawsuit says.

But in a statement released late Wednesday, Coty said that neither the terms Fierce or Sasha Fierce will be used in Knowles' fragrance.

When Knowles applied in September 2008 to trademark "Sasha Fierce" for a fragrance and other items, Abercrombie asked her to refrain from using the name for fragrance, but she disputed there would be any confusion, according to the lawsuit.

Sales of the Abercrombie & Fitch fragrance reached $190 million, according to the lawsuit. The company projects 2009 sales at $64 million. It estimates it spent more than $3 million in 2008 and 2009 on scent machines for its stores.